United Technologies Corporation agreed to pay $18.4 billion for Goodrich Corporation on September 21. The deal would be the largest ever for UTC, an industrial conglomerate that manufactures Otis elevators, Carrier air conditioners, and Sikorsky helicopters. Goodrich manufactures landing gear, wheels, and brakes for the aerospace and defense industries. That business meshes well with two UTC units, aircraft engine manufacturer Pratt & Whitney and Hamilton Sundstrand, a maker of aerospace systems that UTC will merge with Goodrich.
The buyer will pay Goodrich shareholders $16.5 billion, or $127.50 per share in cash, a 47 percent premium to the target’s trading price on September 15, the day news of talks between the companies broke. UTC will also assume $1.9 billion in Goodrich debt. The parties hope to close the deal by the middle of next year, pending approvals from regulators and Goodrich shareholders.
For acquiror United Technologies Corporation (Hartford)
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